Unearned Revenue: Decoding Its Significance in Business Accounting
Accounts Payable decreases (debit) for the original amount due, Inventory decreases (credit) for the discount amount of $240 ($12,000 × 2%), and Cash decreases (credit) for the remaining balance due after discount. Interest is an expensethat you might pay for the use of someone else’s money. Forexample, if you have a credit card and you […]
Uses of Suspense Account Trial Balance With Examples
He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, […]
Expanded Accounting Equation Overview, Formula, Examples
The amount of change in the left side is always equal to the amount of change in the right side, thus, keeping the accounting equation in balance. The expanded version of the common accounting equation is as follows. This transaction decreases assets when the cash is distributed and increases assets when the new equipment is […]
Accounting Equation: What It Is and How You Calculate It
The income statement is also referred to as the profit and loss statement, P&L, statement of income, and the statement of operations. The income statement reports the revenues, gains, expenses, losses, net income and other totals for the period of time shown in the heading of the statement. If a company’s stock is publicly traded, […]
Bookkeeping & Accounting for Your Landscaping Business
Landscaping software offers a slightly different set of features than lawn care software. In addition to business management, most landscaping software will help plan and execute larger projects. If your company designs and builds landscapes and hardscapes from the ground up, you’ll need the right platform. Forget about chaining yourself to a desk or computer, […]
Bookkeeping For HVAC companies: Things You Need to Know
They’re not making sandwiches, but they’re fixing things, setting up cool systems, and doing maintenance stuff. For HVAC businesses, it includes things like how much they spend on equipment, the materials they need, the workers’ pay, and even the people they hire to help out. It’s all the stuff that gets used up when they’re […]
